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Profitability Analysis and Marketing Efficiency of Soyabean (Glycine max) Value Chain among Actors in Abuja, Nigeria

Olugbenga Omotayo Alabi1*, Ayoola Olugbenga Oladele2 and Ibrahim Maharazu3

1Department of Agricultural-Economics, University of Abuja, PMB 117 Gwagwalada-Abuja, Nigeria; 2Department of Agricultural Extension and Management, Federal College of Forestry Mechanization PMB 2273, Afaka, Kaduna, Nigeria; 3Directorate of University Advancement, Kaduna State University (KASU), PMB 2339, Kaduna, Nigeria.

*Correspondence | Olugbenga Omotayo Alabi, Department of Agricultural-Economics, University of Abuja, PMB 117 Gwagwalada-Abuja, Nigeria; Email:


This study analyzed profitability and marketing efficiency of soyabean (Glycine max) value chain among actors in Abuja, Nigeria. This study was designed specifically to achieve the following objectives: describe the socio-economic characteristics of soyabean marketers, determine the marketing cost, marketing margin, and marketing efficiency of soyabean, analyze the costs and returns of marketing soyabean, evaluate factors influencing or affecting marketing efficiency of soyabean, and identify problems or constraints influencing marketing of soyabean. Data obtained were collected from one hundred and fifty (150) randomly selected soyabeans marketers, using well- structured, well-designed questionnaire. Data obtained were coded, analyzed using descriptive statistics, gross margin analysis, financial analysis, marketing margin, marketing efficiency, Probit model analysis, five point Likert scale and principal component analysis. The results revealed that most (86.33%) of the soyabean marketers were between the ages of 31-60 years, about 83.33% of soyabean marketers had less than 5 years marketing experiences. Cost of transportation constitutes 47.56% of the total variable cost. Estimated costs and returns analysis gave the gross margin and gross income of N15,513,400 and N 16,249,000 per annum respectively. Estimated marketing margin and marketing efficiency were 20.13, and 338.66 respectively. Operating ratio (OR), rate of return on investment (RORI), and gross margin ratio (GMR) gave an observed values of 0.05, 19.74 and 0.95, respectively. The gross margin ratio (GMR) of 0.95 means that for every one (1) naira invested in marketing of soyabeans, 95 kobo covered taxes, expenses, profits, and depreciation. Factors statistically and significantly influencing market efficiency of soyabeans were: gender (P<0.05), marital status (P < 0.01), household size (P < 0.01), level of education (P<0.01), and contact with extension agent (P <0.05). Problems or constraints facing marketers of soyabeans were: sales price instability, high cost of transportation, storage problems, lack of credit facilities, and bad road infrastructures. The retained components observed explained 93.24% of the variations in the component retained in the principal component model. The study recommends that marketers should develop new marketing strategies that will increase their profit margin. The sales price instability as a result of poor marketing arrangement could be addressed if processing firms were linked to soyabeans marketers and there is the need for mobilization of soyabean marketers to form group marketing, this will enable them to undertake bulk purchases, and arrange for common transportation mechanism. This may reduce high cost of transportation of their stock from farm gate to the market.


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Sarhad Journal of Agriculture


Vol. 37, Iss. 3, Pages 714-1097


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